The properties of the petitioners are transferred to Government on negotiated sale pursuant to notification under Section 4(1) of the Land Acquisition Act. The sale price was fixed by negotiation and the total sale consideration does not exceed Rs.50 lakhs. Therefore no tax is liable to be deducted either under Section 194 LA or under Section 194 IA of the Income Tax Act, 1961. But the respondents are insisting to deduct the income tax from the sale price payable to the petitioners and hence these writ petitions. The learned counsel for the petitioners places reliance on Ext.P3 judgment and seeks for a direction to extend similar relief to the petitioners as well.
2. Heard the learned Government Pleader as well as the learned Standing Counsel for the respondents.
3. When the matters are taken up for consideration, it is brought to the notice of this Court that the issue is covered in favour of the petitioners by the decision in W.P(C)5607 of 2014 and connected cases and also by the decision in W.P. (C)22079 of 2014, the relevant paragraph of which is extracted 2 below:
“ If no deduction has been made as of now, and the award is passed at a negotiated price, then the aforesaid judgment would apply squarely to the petitioner. The disbursing authority shall hence verify the records to ensure that the awards were passed only under negotiations between the District Level Purchase Committee and the land owners. The crucial aspect to be looked into would be the finality of such award without any scope for challenge by the land owner under the Land Acquisition Act. If the award is one such, then no tax deduction at source need be effected. Further if tax deduction is already made, the petitioner on the principle laid down in the aforesaid judgment could apply for refund”.
Considering the facts and circumstances, the above writ petitions are also disposed of in terms of the judgments, as referred to above.
P.R.RAMACHANDRA MENON JUDGE lk